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Backgrounder

Tenggara Backgrounder is a weekly political and business briefing service combining insights and analysis by in-house experts and those from the Centre for Strategic and International Studies (CSIS) and Universitas Prasetiya Mulya, as well as background information from The Jakarta Post journalists. Tenggara Backgrounder provides you exclusive insights into what’s happening behind the scenes along with insider scoops that are not published in the media.

Edition

June 13, 2025

‘Laptopgate’: Will the AGO go beyond scapegoating?

A Rp 9.9 trillion (US$610 million) corruption scandal involving the procurement of school laptops by the Education, Culture, Research and Technology Ministry from 2019 to 2022, under the leadership of Nadiem Makarim, has captured national attention.

Other Topics
  • PKS loses its Islamist sting in Prabowo’s coalition government
  • Impeachment discourse aimed to keep Gibran under pressure
Danantara’s test case in rescuing bleeding SOEs through cross-subsidy

Danantara has little choice but to rescue financially bleeding state-owned enterprises (SOEs) by channeling dividends from profitable SOEs, as government funds are no longer permitted for such purposes. The market has responded positively to the planned rescue of near-collapse SOEs, though some have warned Danantara of the potential risk of wasting valuable investment capital.

Other Topics
  • Raja Ampat controversy, between nickle mining or sustainable tourism
  • House accelerates industrial reforms amid de-industrialization concerns
Edition

June 6, 2025

To some, Prabowo’s policy on Israel is not just semantics

When President Prabowo Subianto said Indonesia will open diplomatic ties with Israel if it recognizes the state of Palestine, he was paraphrasing a long-held policy in which Jakarta categorically says "no" to any relationship with the Jewish state until Palestinians gain their independent and sovereign state. Same meaning, but he just put it differently.

Other Topics
  • Free basic education ruling may strain budget, disrupt private school sector
  • Prabowo’s meritocratic fantasy
KPPU flags monopoly risk in TikTok-Tokopedia merger

Concerns over predatory pricing and unfair competition in Indonesia's e-commerce landscape have resurfaced following the preliminary findings presented during Initial Commission Hearing on May 27, 2025, at the KPPU office. The commisison revealed a notable increase in market concentration after TikTok's acquisition of Tokopedia, raising the risk of monopolistic practices such as tying, bundling, and the influx of low-cost, illegally imported goods onto the Tokopedia platform.

Other Topics
  • Danantara’s planned corporate actions rife with contradictions
  • Govt rolls out stimulus package to bolster consumption
Edition

May 30, 2025

Corruption overshadows discourse on political party financing

Every five years, Indonesia holds a multi-party general election typically participated in by around 20 political parties. But every time the nation launches a discourse on how best to finance these parties, someone in the room will quickly shout "corruption", a reflection of the distrust the public has toward them.

Other Topics
  • Jokowi’s fake diploma allegation sparks unnecessary controversy
  • Dedi Mulyadi: Sundanese prince’s road to glory
New RUPTL signals energy security prioritized over green transition

The long-awaited 2025-2034 Electricity Procurement Business Plan (RUPTL), launched by the Energy and Mineral Resources (ESDM) Ministry on May 26, 2025, signals a shift in the government's energy priorities—placing greater emphasis on energy security over the green transition. The new RUPTL marks a departure from the previous 2021-2030 RUPTL, which aimed for no new fossil-based capacity additions by 2030. In contrast, the 2025-2034 plan delays the significant ramp-up of renewable energy capacity to the second half of the decade, indicating a slower pace for Indonesia's energy transition ambitions.

Other Topics
  • Fraud cases at BPDs set major setback for the banking industry
  • BI cuts rate during Rupiah appreciation to bolster economic growth
Edition

May 23, 2025

Jokowi’s desperate search for a political home

In his unending quest to find a political party to call home, former president Joko "Jokowi" Widodo's name has now been thrown into the mix of potential candidates to contest the upcoming race for the chairmanship of the Indonesian Solidarity Party (PSI). The nascent party has no legislative seats, but it has a fair share of power within President Prabowo Subianto's government.

Other Topics
  • ‘Premanisme’ part of Indonesia’s business landscape, small or large
  • Questioning military protection of prosecutor’s offices
Prabowo’s appointment of loyalists to tax, customs offices raises alarm

President Prabowo Subianto has once again turned to loyalists with military backgrounds to fill key leadership roles in the Finance Ministry's revenue-generating directorates. His decision to appoint an active military general to head the customs office and an alumnus of military-style Taruna Nusantara (Tarnus) high school to lead the tax office has sparked concerns over the erosion of meritocracy and the growing influence of cronyism in public administration.

Other Topics
  • Inaugural production, returning investors bolster Prabowo’s energy agenda
  • Bulog breaks rice stock record at the expense of quality, market trust
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